A Research On The Pricing Strategies Of International Light Luxury Brands For Its Localization

At present,light luxury consumption generally caters to the diverse needs of consumers.Light luxury products come as one of the most popular ones to a large majority of people in China.However,due to the influence of China’s import tariff system and the differentiated pricing strategy of light luxury brands,As a result,the price difference of light luxury products at home and abroad is large,and the premium of major light luxury brands in China is serious.The emergence of the epidemic in 2020 has forced Chinese consumers to turn to local consumption.In this context,it is very important to study the differentiated pricing strategies of affordable luxury brands in the Chinese market.In this research,Coach(COACH)will stay as the research object,and it will be used to study the differential pricing strategy of the light luxury brand within the Chinese market.This paper firstly defines the differential pricing strategy in the pricing strategy;secondly,with the consumer purchase intention as the dependent variable and the perception of price fairness as the mediating variable,it explores the effect and mechanism of the differential pricing strategy on the consumer purchase intention;at the same time,choose the brand familiar with Degree and ethnocentrism were used as moderator variables to explore the moderating effect of ethnocentrism between differential pricing strategy and perception of price fairness,and the effect of brand familiarity comes as a moderator in balancing the perception of price fairness and consumers’ purchase intention.In order to obtain valuable samples,consumers who lacked awareness of affordable luxury were excluded from the research process,and 453 valid data were recovered through We Chat links,Moments,etc.And empirical analysis has been fully done to have drawn the following conclusions:(1)Differential pricing strategy has a significant impact on purchase intention.The high-price strategy and the same-price strategy were tested by T test(t=0.554,P=0.000<0.005),and the data showed that there were significant differences in consumers’ purchase intentions,that is,differential pricing strategies would have an appreciable effect on consumers’ purchase intentions.(2)The perception of price fairness positively affects consumers’ purchase intention.Taking the perception of price fairness as the independent variable,consumer purchase intention as the dependent variable,and excluding the three control variables of gender,age and education level,a linear regression was performed to obtain the perception of price fairness(β=0.727,t=22.937,P=0.000<0.005)has a significant positive impact on consumers’ purchase intention.For every one unit increase in the perception of price fairness,consumers’ purchase intention increases by 0.727 units.(3)The perception of price fairness has an intermediary effect on the relationship between differential pricing strategy and purchase intention.The study on the mediating effect of price fairness perception found that the test result did not contain 0(BOOTLLCI=-0.568,BOOTULCI=-0.168),indicating that the mediating effect of price fairness perception was significant,and the mediating effect size was-0.463.In addition,after controlling for the perception of price fairness as an intermediary variable,the independent variable differential pricing strategy has no significant impact on the dependent variable consumers’ purchase intention,and the interval(LLCI=-0.148,ULCI=0.334)contains 0.Therefore,the perception of price fairness has an intermediary effect on the relationship in the impact of differential pricing strategies on consumers’ purchase intention,and is the only mediating variable.(4)Ethnocentrism plays a moderating role between differential pricing strategy and perception of price fairness.After excluding control variables,regression was performed on differential pricing strategy(β=0.103,t=2.123,P=0.034<0.05)and ethnocentrism;differential pricing strategy,ethnocentrism and their interaction terms(β=-1.519,t=-5.366,P=0.000<0.005)for hierarchical regression,with a high degree of interaction significance.That is,ethnocentrism moderates the relationship between differential pricing strategies and perceptions of price fairness.(5)Brand familiarity has a moderating effect on the relationship between perception of price fairness and purchase intention.After excluding control variables,the price fairness perception(β=0.646,t=20.314,P=0.000<0.005)and brand familiarity were regressed,and the price fairness perception,brand familiarity and their interaction terms(β=1.248,t=8.789,P=0.000<0.005)for hierarchical regression,with a high degree of interaction significance.That is to say,brand familiarity has a moderating effect on the relationship between price fairness perception and purchase intention.The above research further enriches the related research on differential pricing strategy.While the existing research mainly takes ordinary consumer goods as the research object,it focuses on affordable luxury brands and expands the research object scope of differential pricing strategy.In the meantime,the discussions of the study will give theoretical reference for the light luxury brand enterprises to formulate differential pricing strategies in the Chinese market.